1. Human resource management involves utilizing human resources effectively to achieve organizational and employee objectives. 2. HRM departments pursue objectives like helping the organization achieve its goals, providing motivated employees, and managing change. 3. HRM activities include staffing, rewards, employee development, and employee relations. These activities are performed by HR specialists and operating managers.

1. Chapter 1: Human Resource Management Andrijana Bogdanovska Djurovic New York University 2006

3. Opening Vignette In the begging of the 1990s, Sears, Roebuck and company found themselves in a ten year business downturn; In September 1992 Arthur Martinez began heading up the merchandising group and in 1993 produced a sales increase of more than 9% and a total return for shareholders of 56%; In order to ensure that this success would continue he created a core group of senior executives that become known as the Phoenix Team .

4. Opening Vignette They devised a questionnaire that was and still is, periodically given to employees; A 5 point improvement of the employee attitudes towards the company and their jobs usually brings 1.3 improvement in customer satisfaction driving a 0.5% increase in revenue growth; On annual bases this equates to $200 million in additional revenue;

5. Opening Vignette Sears provides extensive training and greater decision making authority to its new sales associated. They use town hall meetings to seek input and disseminate information; On January 1, 1995, Sears University was established in Chicago. They reward the employees by basing all long-term incentives on non-financial as well as financial performance.

11. ORGANIZATION People People People Mission Strategy Culture Structure People

21. Objectives of HRM Function HR Function (1) Helping the organization reach its goals (2) Efficiently employing the skills and abilities of the workforce (6) Communicating HRM Policies to All Employees (7) Ethical Policies and Socially Responsible Behavior (8) Managing Change (4) Increasing employees’ job satisfaction & self-actualization (5) Achieving Quality of Work Life (9) Managing Increased Urgency & Faster Cycle Time (3) Providing well-trained and motivated employees

25. HR Department Operations Strategy The plan that integrates major objectives Policies Guides to decision making Objectives Goals that are specific and measurable Procedures/Rules Specific directions for decision making